Pritchard & Jerden places insurance with more than 150 different insurance carriers and
wholesale brokers. Of that group, we have contingent profit sharing agreements with
12 companies. Contingent profit sharing agreements are based on the total performance
of the book of business that is placed with that company. While these agreements vary
from company to company, the contingent compensation agreements generally factor in
growth, profitability (loss ratio) and premium retention. These payouts are not
guaranteed and are valued retrospectively – generally over a one-year period.
The additional compensation payable under these contracts represents less than 1%
Pritchard & Jerden’s written premium. We are able to provide more specific information
at an individual client’s request.